Behind the decline in craft beer off-premise sales (SAM)
Craft beer sales in the off-premise channel have been down since March. Craft beer over indexes to the on-premise channel compared to other types of beer. Last year the on-premise channel had extensive restrictions in many parts of the country. With restrictions lifting across the country in recent months, the on-premise channel has begun recovering its lost share, causing sales declines in the off-premise channel. On-premise sales velocity was up 120% for the week ended May 29. On-premise sales velocity has been above 2019’s levels for several weeks, as seen in the following chart. Off-premise sales are still higher than in 2019.
When comparing craft beer off-premise sales to 2019, sales were up as much as 25% in April 2021 and up more than 15% in May 2021. Independent craft beer has been trending at nearly the same share in the off-premise channel as last year, indicating there is not much change in the demand for craft, just the shift in the channel.
Return to the office (ACI)
According to Kastle Office Systems, the average office occupancy of the top ten cities in the U.S. was 31.5% for the week ended June 9th. The average occupancy increased 1.5% points from the previous week, as seen in the chart below. San Francisco and San Jose had the lowest occupancy level of the top ten cities at 18.2% and 20.2%, respectively. The Texas cities Dallas, Austin, and Houston had the highest occupancy level at 49.7%, 48.7%, and 47.7% respectively. Compared to the previous week, the Texas cities had the largest increase in occupancy level from the previous week. The return of office workers would shift the food at home consumption to away from home, negatively impacting the grocers.
All Market IPO
All Market, the parent company of Vita Coco, is planning to go public as soon as the third quarter. The company is seeking a $2B valuation. Vita Coco is a leading coconut water brand. Coconut water is a competitive category with more than a dozen competitors, including brands owned by Coca-Cola and Pepsi. All Market also owns Runa energy drinks and Ever & Ever, a water brand. Verlinvest, an investment firm that focuses on purpose-led brands, is an investor in All Market. Verlinvest is Oatly’s largest shareholder.
